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AudraL (Delaware)
Posts: 12
Posted:
Our situation is this...we are a community with 210 homes in central Delaware. We have specific guidelines for fences (must be a post & rail design and constructed of wood) and storage sheds (must be A-frame, no larger than 120sq ft, have vinyl siding, a single entry doorway and two windows). The builder has not transferred the HOA management to the homeowners yet; all requests go to builder/declarant and/or ARC/Board of Directors.
Over the years they have approved many white vinyl fences (instead of wood, as the guidelines state) and over a dozen storage sheds that do not fall within our HOA guidelines. Some sheds have two doors, or no windows, or barn style, or no vinyl siding and even one that is 60 sq ft too big (they claim that approval was a mistake, but also said they were not going to pursue correcting their mistake).
Now here's the thing, we homeowners don't really care. As we understand it, law is interpreted by precedent, and when all these things were approved, whatever their logic behind it, they inadvertently set a precedent of a new standard in our neighborhood. The "written law" is supposed to remain aligned with "expressed law", right? I mean, in order to prevent discrepancies and potential lawsuits from one angle or the other, anyway.
Basically, we just want the Declarant/Board of Directors to amend the written guidelines to match what they approved, so other homeowners can be allowed the same standards as their neighbors.
Our Declarations state that the Declarant can do this anytime ("The Declarant, so long as it is the owner of at least one Lot in the Community, shall have the absolute right to amend this Declaration from time to time, without the joinder of any other owners, by executing and recording an amendment in the Record’s Office") or the Board of Directors can as well
("If any amendment to this declaration of the Bylaws is necessary in the judgement of the Board of Directors to change, correct or supplement anything appearing or failing to appear therein which is ambiguous, incorrect, defective or inconsistent with anything in either the Declaration of the Bylaws, the Board of Directors may, at any time and from time to time effect an appropriate corrective amendment without the approval of the Lot Owners upon receipt by the Board of Directors of an opinion from independent counsel to the effect that is the proposed amendment is permitted by the terms of this paragraph").
The Declarant stated they do not want to do it, but said we can, whenever we take over the HOA. But meanwhile, any new fence or storage sheds get denied (or approved, who knows, it varies) when/if they look at the written guidelines, even though, again, they have approved many outside the guidelines already.
We don't feel it fair that homeowners must wait to take over the HOA before they can have a fence or a shed their neighbors have, so we thought to send the Declarant/Builder/Board of Directors a "unified request", in way of a petition, just respectfully requesting they amend the written guidelines to match what they have approved over the past several years, as they are authorized to do. Kind of a "calling them on their HOA management duties", as it seems blatantly negligent that they are inconsistent, aware of such inconsistencies and yet don't want to remedy it by just filing an amendment at the Recorder's Office.
I've spoken to many other HOA Board members about this, and they agree it easiest/best to have Declarant just amend, rather than transfer the headache to homeowners with no experience in this sort of thing. I'm curious what are thoughts of those here regarding our specific tactic...? thanks in advance.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Your still under Declarant control. Not much you can do until you the owners take over. My HOA is similar right now. However, our problem is we have 2 different builders. Only 1 owns the HOA. They also have a terrible MC who doesn't know what they are doing. Our builder has a set of rules for fences. I got my fence approved for those standards. The MC on the other hand says there are "no standards" for fences. So they are approving any kind of fence people want to put up that is wood and painted.

You just have to wait till the HOA is owned by the owners to make changes. Get prepared now.

Former HOA President
AugustinD
Posts: 3,698
Posted:
-- How much is having the Declarant amend worth to you all? Keep in mind that what you all spend on an attorney may exceed the cost of the board ultimately controlled by owners doing the amendments on its own.

-- "Guidelines" is a problematic term here. If you quote exactly what the covenants say about the Arch committee, fences and sheds, this would be best.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Realistically, you can ask for whatever you want but the developer doesn't need to do anything. Amending the CC&Rs costs money and is a distraction, so I'm not surprised that he's not interested in doing this right now.

Unfortunately, homeowners are not in a position to force this. It's possible that as you begin to get homeowners onto the board that the developer may be willing to listen to them. But as you note, the number of non-compliant fences will continue to rise in the meantime, so may be stuck with them.
AudraL (Delaware)
Posts: 12
Posted:
Exact quote of shed restrictions is expansive, fences a little less so. I could copy the whole text here if you want, but that is not the focus of this post. I've read the Declarations of Restrictions and it's obvious what was approved does not match what is here. Thats fine, we homeowners really don't care. We just want to have the restrictions amended so the new standard is "on the books", so to speak, and everyone can continue with their lives having the same options their neighbors have.

Either way, the amendment process would be paid for out of our HOA funds, whether homeowners hired a lawyer to do it, or the Builder. Each homeowner did pay HOA fees at settlement ($300 each home x 210 homes= $62,000) so there should be funds available. We're not expecting the Board to pay out of pocket for this, we just want them to do it, because that is their responsibility. It is stated in the Declaration of Restrictions that when inconsistencies occur, Declarant/Board are responsible for, and able to, amend...without homeowner consent or their vote. So from our perspective...the Board approved things not within the DOR, and now they need to make that criteria the "new standard"on paper, to cover their bottoms (in the event other homeowners challenge their approvals/denials claiming negligence, discriminations, favoritism, etc) and because they are under obligation, as the HOA manager, to do it.

AudraL (Delaware)
Posts: 12
Posted:

"Unfortunately, homeowners are not in a position to force this."

This is puzzling to me... How are homeowners in no position to ensure that the current Board is managing their own HOA, as they are contracted to do? Who, then, holds the Declarant/Board responsible? How can the Declarant/Board break Declaration of Restrictions (which they are obligated to NOT do) and then refuse to tie up the loose ends they created in their own negligence? Logically, all parties in the contract are obligated to "stay in their lane" and manage their lane appropriately, as the Restrictions state to do. If homeowners can be fined for not adhering to the restrictions, why can the Declarant/Board not be? How is mis-managing the HOA responsibilities not seen as incompetent and/or negligent? A contract is a contract, after all.
AudraL (Delaware)
Posts: 12
Posted:
"Realistically, you can ask for whatever you want but the developer doesn't need to do anything. Amending the CC&Rs costs money and is a distraction, so I'm not surprised that he's not interested in doing this right now."

Isn't it correct that the Declarant/Board are both obligated to uphold the HOA Declaration of Restrictions? Yes, amending costs money, but our paid HOA fees at settlement should cover that expense. We're not asking them to dip in to their wallets. lol

We don't care too much about the non-compliant fences/sheds. We just want future headaches alleviated from homeowners. While we know we are not in a position to "enforce", and the petition is a unified "please do your job" reminder...who can enforce? Is it the county in which we live (like the departments of "Planning" or maybe "Inspections & Enforcement")?

CathyA3 (Ohio)
Posts: 6,299
Posted:
Homeowners have the authority to elect directors or to remove directors from the board if they believe that the board is not doing a good job. But they do not have any authority over the developer while the developer is in control. They do not have any ability to change the CC&Rs no matter how much they don't like them. An impartial observer would note that you agreed to abide by the terms of the CC&Rs when you signed the closing documents on your home. If there were deal-breakers in them, that should have given you pause.

It's possible your CC&Rs are as vague as you say they are. But at this point, there isn't anything you can do about it. You have to wait until homeowners have control of the association, the board can hire an association attorney, and have that person draft amendments to clarify the vague sections. Keep in mind that these amendments will cost you money, and they must be approved by the majority of homeowners (a super-majority is normal). There may well be owners who approve of the vague CC&Rs because they don't think HOAs should nitpick aesthetic choices, and the amendment may not pass.

But you don't have to believe me. You can consult with an attorney in your area who specializes in HOA issues and see what that person has to say.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Audra

The way it happens is a Declarant will have enough votes to sway any proposed changes. Typically a Declarant may have 10 votes (it will be in your Covenants) for every single unsold unit.

You say you have 210 units. Assume the Declarant owns 20 units this gives him 200 votes to the owners 190.
AudraL (Delaware)
Posts: 12
Posted:
CathyA3,
"you agreed to abide by the terms of the CC&Rs when you signed the closing documents on your home. If there were deal-breakers in them, that should have given you pause."

Yup, and we were fine with all the terms, and still would be, if the Declarant/Board was also abiding by them. When the restrictions state a 10x12 shed is allowed, but your neighbors now have a 12x14 or 12x16, yet the written still says you're only allowed a 10x12...I can see how this could become an issue down the road for homeowners. It seems the easiest way to fix the discrepancy between written & expressed law is to just amend. Homeowners shouldn't be tasked with collecting a 2/3 majority vote on something that is completely streamlined under the Declarant/Board. At least, that's how a bunch of us see it. We haven't ruled out legal consultation, either.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By CathyA3 on 03/25/2022 2:13 PM
Homeowners have the authority to elect directors or to remove directors from the board if they believe that the board is not doing a good job. But they do not have any authority over the developer while the developer is in control.
?

Owners in HOAs have brought suit against Declarants for violating the covenants or General Plan before, and they will again. A declarant that is majorly deviating from the covenants can be busted by the courts.

On the other hand, I think the OP is operating under the illusion that, when a group of owners points out to the Declarant that it is violating its own covenants, the Declarant must cease doing so. Nope. This is the real world, AudraL. In the real world, much to most of the time owners have to lawyer up.
AudraL (Delaware)
Posts: 12
Posted:
AugustineD...thanks for your verification that Declarants have been sued for violating covenants.

(but not sure what "OP" stands for :/) lol

Regarding your comment" "operating under the illusion that when a group of owners points out to the Declarant that it is violating its own covenants, the Declarant must cease doing so."

Our hope is not that the Declarant/Board stop approving sheds/fences outside the restrictions. They've already been approved. We now just want what is fair to all the homeowners. If some homeowners were approved for a certain shed outside the restrictions, others should be approved for that exact same shed as well. The restrictions should be amended so as to easily allow for this. It's in the Restrictions for the Declarant/Board to make amendments when this scenario occurs. They are just ignoring their responsibility, assuming we homeowners are unaware that they are accountable for their failure in management responsibilities.
Our hope is that, with the potential "bad PR" that may come from the "petition" (which is more like a unified request), the Declarant will feel more motivated to make the amendment and be done with a bunch of homeowners watching his moves, so to speak.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
So did you apply for a shed or a fence and was turned down? There are many factors outside of "size" of why one is approved or denied. For example: Our HOA we had a 6 foot fence rule. However, when our streets turned "public" we had to install official "Stop/Yield" signs. A neighbor on a corner wanted to put up a fence. The problem was that a 6 foot fence at the "specs" allowed would have blocked the view of the stop sign.

I had the board approve that the person could still install a fence but "step it down" to 4 foot at the door. This allowed them to have their fence but did not block the view of the Stop sign. No the fence wasn't to "spec" being 6 feet tall all around but it was not safe otherwise.

A Developer can decide what they are okay with. Plus are you so sure they even got permission? My current neighbors put up fences without HOA approval or knowledge. It may be they had to reach a deal with the HOA/Developer from removing.

Former HOA President
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By AudraL on 03/25/2022 4:15 PM
Our hope is not that the Declarant/Board stop approving sheds/fences outside the restrictions. They've already been approved. We now just want what is fair to all the homeowners. If some homeowners were approved for a certain shed outside the restrictions, others should be approved for that exact same shed as well. The restrictions should be amended so as to easily allow for this. It's in the Restrictions for the Declarant/Board to make amendments when this scenario occurs. They are just ignoring their responsibility, assuming we homeowners are unaware that they are accountable for their failure in management responsibilities.
Our hope is that, with the potential "bad PR" that may come from the "petition" (which is more like a unified request), the Declarant will feel more motivated to make the amendment and be done with a bunch of homeowners watching his moves, so to speak.
AudraL, maybe take the following with a shakerful of salt.

I knew the word "petition" was going to come up(!). God help us.

I was in fifth grade when a petition was going around among the kids to do xyz. We had a fine school district with well paid teachers. One of the teachers scoffed at us: Petitions do not do anything.

(Of course, sometimes the law recognizes petitions. E.g. many HOA/COA documents say that a petition by 20% of the owners for a Special Meeting shall result in the President calling for a Special Meeeting" et cetera.)

"Unified request" also has no legal bite, AFAIC.

I am not convinced there would be substantive PR. You think your local papers would care? Potential buyers?

In my experience you all do not have the power to do much other than politely ask for xyz.

The lawsuits of which I spoke are over much bigger stakes. For example, a declarant said she'd/he'd build a golf course. Half the subdivision's lots are sold, all on the periphery of where the golf course will be. Fairway views and all. Then, boom, the declarant gets city council/planning commission approval to sell the land for the golf course to another developer. Why? Because the city needs more housing.

Go ahead and make the request. Be factual. Don't be cheap about citing the relevant Declaration sections. Make your plea at the end for the Declarant to amend the governing documents.

Then keep in mind the Declarant need do nothing until he/she loses a lawsuit and has a judge's order in hand to do xyz.

Even if you had an attorney, the first step would be simply to make a request.

AudraL (Delaware)
Posts: 12
Posted:
MelissaP1...
"So did you apply for a shed or a fence and was turned down?"

Yes, we applied for the exact 12x16 storage shed that a fellow homeowner got approved. This was years after we watched various sheds come in to the community that were not within the restrictions, so naturally so we were assuming the builder/declarant was taking liberties & setting a precedent for a new standard.
When the larger shed went in, and the owner said it was approved, many homeowners requested the same. But all were denied. We later found out that his next door neighbor complained to the Builder (ironic, bc he had a barn-style shed approved, and it's against Restrictions) that it wasn't within restrictions and the builder came back saying the approval was a mistake, but that they were not going to do anything to pursue correcting it (i'm guessing such as buy him...?).
Which set a few of us investigating further in to other the things that are in the neighborhood not within restrictions, which led us to the fences. No, I am not sure every house with a vinyl fence has permission for such, but many do. And again, we, as neighbors, don't want them to be forced to be removed. We just want the paperwork updated to include these items, and then the ones "outside" restrictions are "inside" and the other neighbors can have the same items. We aren't looking to fight anyone, we just want to make what's right, right.

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